Arbor Realty Trust Reports Fourth Quarter and Full Year 2009 Results
UNIONDALE, N.Y., Feb. 26 /PRNewswire-FirstCall/ --
Fourth Quarter Highlights:
- Net loss attributable to Arbor Realty Trust, Inc. of $133.7 million, or $5.27 per diluted common share
- FFO loss of $133.6 million, or $5.26 per diluted common share (1)
- Adjusted book value per share $7.96, GAAP book value per share $3.81 (1)
- Recorded $99.8 million in loan loss reserves and $24.5 million in losses on restructured loans
- Recorded impairment of $9.8 million on securities held-to-maturity
Recent Developments Subsequent to December 31, 2009:
- Agreed to retire all $336 million of debt with Wachovia for $176 million
- Retired $114 million of trust preferred securities in exchange for CDO bonds and cash
Full Year Highlights:
- Net loss attributable to Arbor Realty Trust, Inc. of $230.6 million, or $9.11 per diluted common share
- FFO loss of $229.5 million, or $9.06 per diluted common share (1)
- Recorded $241.3 million in loan loss reserves and $57.6 million in losses on restructured loans
- Restructured and reduced substantially all short-term debt and agreed to retire, at a significant discount, the remaining $336 million of debt for $176 million in 2010
- Amended and restructured all trust preferred securities and retired $114 million in 2010
- Amended management agreement with external manager
- Generated gains on early extinguishment of debt of $54.1 million
- Recorded $48.1 million of net gains from exchange of Prime interest
- Recorded impairments of $13.0 million on equity investments, $9.8 million on securities held-to-maturity and $4.9 million from a real estate owned asset
Arbor Realty Trust, Inc. (NYSE: ABR), a real estate investment trust focused on the business of investing in real estate related bridge and mezzanine loans, preferred and direct equity investments, mortgage-related securities and other real estate related assets, today announced financial results for the fourth quarter and year ended December 31, 2009. Arbor reported a net loss attributable to Arbor Realty Trust, Inc. for the quarter of $133.7 million, or $5.27 per diluted common share, compared to net loss attributable to Arbor Realty Trust, Inc. for the quarter ended December 31, 2008 of $108.2 million, or $4.30 per diluted common share. Funds from operations ("FFO") for the quarter was a loss of $133.6 million, or $5.26 per diluted common share, compared to FFO loss for the quarter ended December 31, 2008 of $107.7 million, or $4.28 per diluted common share. (1)
Net loss attributable to Arbor Realty Trust, Inc. for the year ended December 31, 2009 was $230.6 million, or $9.11 per diluted common share, compared to net loss attributable to Arbor Realty Trust, Inc. for the year ended December 31, 2008 of $81.2 million, or $3.54 per diluted common share. FFO for the year ended December 31, 2009 was a loss of $229.5 million, or $9.06 per diluted common share, compared to FFO loss for the year ended December 31, 2008 of $79.3 million, or $3.46 per diluted common share. (1)
The net balance in the loan and investment portfolio, excluding loan loss reserves, was $2.1 billion at December 31, 2009, compared to $2.2 billion at September 30, 2009. The average balance of the loan and investment portfolio, excluding loan loss reserves, during the fourth quarter of 2009 was $2.2 billion and the average yield on these assets for the quarter was 4.42%, compared to $2.2 billion and 5.36% for the third quarter of 2009. Excluding the effect of reductions in interest income related to the uncollectibility of interest on impaired, non-performing and restructured loans totaling approximately $4.8 million and $0.5 million for the quarters ended December 31, 2009 and September 30, 2009, respectively, the average yield on these assets for the quarter was 5.29%, compared to 5.45% for the third quarter of 2009.
At December 31, 2009, the balance of debt financing on the loan and investment portfolio was $1.7 billion, as compared to $1.8 billion at September 30, 2009. The average balance of debt financing on the loan and investment portfolio during the fourth quarter of 2009 was $1.8 billion and the average cost of these borrowings was 4.21%, compared to $1.8 billion and 4.49% for the third quarter of 2009. In addition, the fourth quarter of 2009 included $0.1 million of interest expense due to a change in the market value of certain interest rate swaps in accordance with GAAP, as compared to $1.7 million of interest expense in the third quarter of 2009. Excluding the effect of these swaps, the average cost of borrowings for the fourth quarter of 2009 was 4.19%, as compared to 4.12% for the third quarter of 2009.
(1) See attached supplemental schedule of non-GAAP financial measures.
Debt Retirement
In 2009, as previously disclosed, the Company restructured all of the Company's $374 million of debt with Wachovia Bank, National Association ("Wachovia"). In addition, subsequent to this restructuring, the Company paid down approximately $38 million of this debt during 2009, leaving a remaining balance outstanding of approximately $336 million. In 2010, the Company entered into an agreement with Wachovia to retire all of the $335.6 million of outstanding debt for $176.2 million, representing 52.5% of the face amount of the debt.
The $335.6 million of indebtedness is comprised of $286.1 million of term debt and a $49.5 million working capital facility. These were the outstanding balances in each facility at the time the parties began negotiations. The Company can pay off the discounted outstanding amount at any time on or before May 31, 2010 and also has two consecutive 45 day extension options, which would extend the payoff date to August 27, 2010. The agreement provides the Company the ability to apply paydowns of the Wachovia facilities against the discounted payoff amount during the term of the agreement. The Company has made payments of $62.3 million towards the initial discounted payoff amount of $176.2 million, leaving $113.9 million payable to Wachovia under this agreement. The closing of this agreement is subject to certain closing conditions and the Company's ability to obtain the necessary capital. The Company can make no assurances that it will be able to access sufficient capital on terms and conditions acceptable to the Company.
Also in 2009, as previously disclosed, the Company amended and restructured all of the Company's junior subordinated notes. In 2010, the Company retired $114.1 million of these junior subordinated notes in exchange for collateralized debt obligation bonds ("CDO bonds") and $10.5 million in cash. The CDO bonds were comprised of securities issued by the Company and securities of other issuers with an aggregate face value of $67.3 million that the Company previously acquired for an aggregate purchase price of $22.2 million. Upon completion of this transaction, the Company had an outstanding balance of approximately $175.9 million.
In the first quarter of 2010, this transaction is expected to result in the Company recording approximately $65 million of additional CDO debt, of which approximately $42 million represents the portion of the Company's CDO bonds that were exchanged and approximately $23 million represents the estimated interest due on the bonds through their maturity, a reduction to securities available-for-sale of approximately $0.4 million representing the fair value of CDO bonds of other issuers, and a gain on extinguishment of debt of approximately $26 million.
Other Financing Activity
As of December 31, 2009, Arbor's financing facilities for its loan and investment portfolio totaled approximately $1.8 billion and borrowings outstanding under such facilities were $1.7 billion.
During the fourth quarter of 2009, the Company reduced its outstanding warehouse and term debt balances by approximately $17.5 million through a combination of loan payoffs, assets being moved into the Company's CDO vehicles, and the monetization of certain investments. In addition, subsequent to 2009, the Company has further reduced these debt balances by approximately $45.9 million through a combination of loan payoffs and assets being moved into the Company's CDO vehicles.
The Company is subject to various financial covenants and restrictions by each of the Company's CDO and credit facilities. The Company believes that it was in compliance with all credit facility financial covenants and restrictions as of December 31, 2009 with the exception of a net worth covenant under the Wachovia facility. The Company has obtained a waiver of this covenant, as well as a waiver of the ratio of liabilities to net worth covenant, until the effective date of the debt retirement agreement with Wachovia described above.
Portfolio Activity
During the fourth quarter of 2009, Arbor purchased one AAA rated commercial mortgage-backed security at a discounted price of approximately $1.7 million with a face amount of $2.0 million.
Also, during the quarter, one loan paid off with an outstanding balance net of reserves of approximately $12 million, resulting in a $3 million loss and six loans had paydowns and reductions totaling approximately $40 million, of which $27 million was related to write downs on the restructuring of two loans. In addition, 10 loans were either refinanced or modified with Arbor totaling $282 million, of which seven loans totaling approximately $214 million were scheduled to repay during the quarter.
Additionally, two loans totaling approximately $66 million were extended during the quarter in accordance with the extension options of the corresponding loan agreements.
At December 31, 2009, the loan and investment portfolio unpaid principal balance, excluding loan loss reserves, was $2.1 billion, with a weighted average current interest pay rate of 4.95%. At the same date, advances on financing facilities pertaining to the loan and investment portfolio totaled approximately $1.7 billion, with a weighted average interest rate of 3.88% excluding financing costs, interest rate swap costs and changes in the market value of certain interest rate swaps.
As of December 31, 2009, Arbor's loan portfolio consisted of 35% fixed-rate and 65% variable rate loans.
During the fourth quarter of 2009, the Company recorded $99.8 million in loan loss reserves related to 23 loans with a carrying value of approximately $618.3 million, before loan loss reserves. The loan loss reserves were the result of the Company's regular quarterly risk rating review process, which is based on several factors including current market conditions, real estate values and the operating status of each property. At December 31, 2009, the Company's total loan loss reserves were $326.3 million relating to 31 loans with an aggregate carrying value before reserves of approximately $693.5 million.
The Company had 13 non-performing loans with a carrying value of approximately $110.8 million, net of related loan loss reserves of $115.0 million as of December 31, 2009, compared to nine non-performing loans with a carrying value of approximately $96.9 million, net of related loan loss reserves of $101.0 million as of September 30, 2009. During the fourth quarter of 2009, the Company received a discounted payoff on a $33.1 million non-performing loan, which resulted in a $21.0 million charge-off of previously recorded loan loss reserves and a $2.7 million loss on restructured loans during the quarter. Income recognition on non-performing loans has been suspended and will resume when the loans become contractually current and performance has recommenced.
In the fourth quarter of 2009, the Company recorded $9.8 million of other-than-temporary impairment, in accordance with GAAP, associated with one of the Company's securities held-to-maturity, which was reclassified to securities available-for-sale during the quarter. This security represents a CDO bond security issued by another commercial mortgage REIT, which the Company exchanged in 2010 as part of the retirement of its junior subordinated notes. GAAP requires that, when a security is reclassified to securities available-for-sale, the security is recorded at its estimated fair market value and any decline in such value is recorded as other-than-temporary impairment.
Management Fee
The Company's manager did not earn an incentive management fee for the year ended December 31, 2009. The Company prepaid approximately $7.3 million in incentive management fees to its manager in 2008 related to Prime, of which 50% was paid in cash and 50% was paid in the Company's common stock. In accordance with the management agreement, the prepaid management fee related to Prime is required to be repaid in two installments of 25% due by December 31, 2010 and 75% due by June 30, 2012, with an option to make either payment in cash and/or the Company's common stock, provided that at least 50% of the total payment is made in cash. As a result, this amount was reclassified to Due from Related Party. The $7.3 million prepaid management fee will be offset against any future incentive management fees or success-based payments earned by the Company's manager prior to June 30, 2012.
Dividend
Under the terms of the Company's debt agreements, annual dividends are limited to 100% of taxable income to common shareholders and are required to be paid in the form of the Company's stock to the maximum extent permissible (currently 90%), with the balance payable in cash. The Company will be permitted to pay 100% of taxable income in cash if certain conditions are met. Based on the continued difficult economic environment, the Board of Directors has elected not to pay a common stock dividend for the quarter ended December 31, 2009.
Equity Participation Interests
Attached as an exhibit to this press release is a schedule of certain data pertaining to the Company's investments with equity participation interests. There were no new loans and investments originated during the quarter with equity participation interests.
Earnings Conference Call
Management will host a conference call today at 10:00 a.m. ET. A live webcast of the conference call will be available online at www.arborrealtytrust.com. Web participants are encouraged to go to Arbor's Web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. Listening to the webcast requires speakers and RealPlayer™ software, downloadable without charge at www.real.com. Those without Web access should access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (866) 383-8008 for domestic callers and (617) 597-5341 for international callers. The participant passcode for both is 20159616.
After the live webcast, the call will remain available on Arbor's Web site, www.arborrealtytrust.com through March 26, 2010. In addition, a telephonic replay of the call will be available until March 5, 2010. The replay dial-in number is (888) 286-8010 for domestic callers and (617) 801-6888 for international callers. Please use passcode: 45227796.
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. is a real estate investment trust, which invests in a diversified portfolio of multi-family and commercial real estate related bridge and mezzanine loans, preferred equity investments, mortgage related securities and other real estate related assets. Arbor commenced operations in July 2003 and conducts substantially all of its operations through its operating partnership, Arbor Realty Limited Partnership and its subsidiaries. Arbor is externally managed and advised by Arbor Commercial Mortgage, LLC, a national commercial real estate finance company operating through 11 offices in the US that specializes in debt and equity financing for multi-family and commercial real estate.
Safe Harbor Statement
Certain items in this press release may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor's expectations include, but are not limited to, continued ability to source new investments, changes in interest rates and/or credit spreads, changes in the real estate markets, and other risks detailed in Arbor's Annual Report on Form 10-K for the year ended December 31, 2008 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
Non-GAAP Financial Measures
During the quarterly earnings conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A supplemental schedule of each non-GAAP financial measure and the comparable GAAP financial measure can be found at the end of this release.
Contacts: |
Investors: |
|
Arbor Realty Trust, Inc. |
Stephanie Carrington / Amy Glynn |
|
Paul Elenio, Chief Financial Officer |
The Ruth Group |
|
516-506-4422 |
646-536-7023 |
|
Media: |
||
Bonnie Habyan, SVP of Marketing |
||
516-506-4615 |
||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended Year Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited)
Interest income $24,657,501 $45,426,176 $117,262,129 $204,135,097
Interest expense 19,062,718 21,296,971 80,102,075 108,656,702
---------- ---------- ---------- -----------
Net interest
income 5,594,783 24,129,205 37,160,054 95,478,395
--------- ---------- ---------- ----------
Other revenues:
Property operating
income 339,922 - 916,246 -
Other income 9,291 15,799 809,808 82,329
----- ------ ------- ------
Total other
revenues 349,213 15,799 1,726,054 82,329
------- ------ --------- ------
Other expenses:
Employee
compensation
and benefits 2,115,882 1,539,815 10,154,276 8,110,003
Selling and
administrative 1,648,799 1,455,922 10,505,013 8,197,368
Property
operating
expenses 477,480 - 1,411,253 -
Depreciation and
amortization 68,782 - 94,819 -
Other-than-
temporary
impairment 9,849,030 4,826,674 10,260,555 17,573,980
Provision
for loan
losses 99,828,039 124,000,000 241,328,039 132,000,000
Loss on
restructured
loans 24,451,812 - 57,579,561 -
Management fee -
related party 2,000,000 23,730 15,136,170 3,539,854
--------- ------ ---------- ---------
Total other
expenses 140,439,824 131,846,141 346,469,686 169,421,205
----------- ----------- ----------- -----------
Loss from continuing
operations before
gain on exchange
of profits interest,
gain on extinguishment
of debt, loss on
termination of swaps
and income (loss)
from equity
affiliates (134,495,828) (107,701,137) (307,583,578) (73,860,481)
Gain on exchange
of profits
interest - - 55,988,411 -
Gain on
extinguishment
of debt - - 54,080,118 -
Loss on termination
of swaps - - (8,729,408) -
Income (loss)
from equity
affiliates 862,451 (178,791) (438,507) (2,347,296)
------- -------- -------- ----------
Net loss from
continuing
operations (133,633,377) (107,879,928) (206,682,964) (76,207,777)
------------ ------------ ------------ -----------
Loss on impairment
of real estate
held-for-sale - - (4,898,295) -
Loss on operations
of real estate
held-for-sale - (191,747) (377,042) (582,294)
- -------- -------- --------
Loss from
discontinued
operations - (191,747) (5,275,337) (582,294)
- -------- ---------- --------
Net loss (133,633,377) (108,071,675) (211,958,301) (76,790,071)
Net income
attributable to
noncontrolling
interest 52,084 166,852 18,672,855 4,439,773
------ ------- ---------- ---------
Net loss
attributable to
Arbor Realty
Trust, Inc. $(133,685,461) $(108,238,527) $(230,631,156) $(81,229,844)
============= ============= ============= ============
Basic loss per
common share:
Net loss from
continuing
operations, net
of noncontrolling
interest $(5.27) $(4.29) $(8.90) $(3.52)
Loss from
discontinued
operations - (0.01) (0.21) (0.02)
- ----- ----- -----
Net loss
attributable to
Arbor Realty
Trust, Inc. $(5.27) $(4.30) $(9.11) $(3.54)
====== ====== ====== ======
Diluted loss per
common share:
Net loss from
continuing
operations, net
of noncontrolling
interest $(5.27) $(4.29) $(8.90) $(3.52)
Loss from
discontinued
operations - (0.01) (0.21) (0.02)
- ----- ----- -----
Net loss
attributable to
Arbor Realty
Trust, Inc. $(5.27) $(4.30) $(9.11) $(3.54)
====== ====== ====== ======
Dividends declared
per common share $- $0.24 $- $2.10
== ===== == =====
Weighted average
number of shares
of common stock
outstanding:
Basic 25,387,410 25,148,224 25,313,574 22,916,648
========== ========== ========== ==========
Diluted 25,387,410 25,148,224 25,313,574 22,916,648
========== ========== ========== ==========
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2009 2008
---- ----
(Unaudited)
Assets:
Cash and cash equivalents $64,624,275 $832,041
Restricted cash 27,935,470 93,219,133
Loans and investments, net 1,700,774,288 2,181,683,619
Available-for-sale securities, at fair
value 488,184 529,104
Securities held-to-maturity, net 60,562,808 58,244,348
Investment in equity affiliates 64,910,949 29,310,953
Real estate owned, net 8,205,510 46,478,994
Real estate held-for-sale, net 41,440,000 -
Due from related party 15,240,255 2,933,344
Prepaid management fee - related party 19,047,949 26,340,397
Other assets 57,545,084 139,664,556
---------- -----------
Total assets $2,060,774,772 $2,579,236,489
============== ==============
Liabilities and Equity:
Repurchase agreements $2,657,332 $60,727,789
Collateralized debt obligations 1,100,515,185 1,152,289,000
Junior subordinated notes to subsidiary
trust issuing preferred securities 259,487,421 276,055,000
Notes payable 375,219,206 518,435,437
Notes payable-related party - 4,200,000
Mortgage note payable 41,440,000 41,440,000
Due to related party 1,997,629 993,192
Due to borrowers 6,676,544 32,330,603
Deferred revenue 77,123,133 77,123,133
Other liabilities 97,024,352 134,647,667
---------- -----------
Total liabilities 1,962,140,802 2,298,241,821
------------- -------------
Commitments and contingencies - -
Equity:
Arbor Realty Trust, Inc. stockholders’ equity:
Preferred stock, $0.01 par value:
100,000,000 shares authorized; no shares
issued or outstanding - -
Common stock, $0.01 par value:
500,000,000 shares authorized;
25,666,810 shares issued, 25,387,410
shares outstanding at December 31, 2009
and 25,421,810 shares issued, 25,142,410
shares outstanding at December 31, 2008 256,668 254,218
Additional paid-in capital 450,376,782 447,321,186
Treasury stock, at cost - 279,400 shares (7,023,361) (7,023,361)
Accumulated deficit (293,585,378) (62,939,722)
Accumulated other comprehensive loss (53,331,105) (96,606,672)
----------- -----------
Total Arbor Realty Trust, Inc.
stockholders’equity 96,693,606 281,005,649
---------- -----------
Noncontrolling interest in consolidated
entity 1,940,364 (10,981)
--------- -------
Total equity 98,633,970 280,994,668
---------- -----------
Total liabilities and equity $2,060,774,772 $2,579,236,489
============== ==============
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
December 31, 2009
-----------------
GAAP Arbor Realty Trust, Inc. Stockholders' Equity $96,693,606
Add: 450 West 33rd Street transaction - deferred revenue 77,123,133
Unrealized loss on derivative instruments 47,372,213
Subtract: 450 West 33rd Street transaction -
prepaid management fee (19,047,949)
-----------
Adjusted Arbor Realty Trust, Inc. Stockholders' Equity $202,141,003
============
Adjusted book value per share $7.96
=====
GAAP book value per share $3.81
=====
Common shares outstanding 25,387,410
==========
Given the magnitude and the deferral structure of the 450 West 33rd Street
transaction combined with the change in the fair value of certain
derivative instruments, Arbor has elected to report adjusted book value
per share for the affected period to currently reflect the future impact
of the 450 West 33rd Street transaction on the Company's financial
condition as well as the evaluation of Arbor without the effects of
unrealized losses from certain of the Company's derivative instruments.
Management considers this non-GAAP financial measure to be an effective
indicator, for both management and investors, of Arbor’s financial
performance. Arbor’s management does not advocate that investors consider
this non-GAAP financial measure in isolation from, or as a substitute for,
financial measures prepared in accordance with GAAP.
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES - Continued
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
Net loss
attributable to
Arbor Realty
Trust, Inc.,
GAAP basis $(133,685,461) $(108,238,527) $(230,631,156) $(81,229,844)
Add:
Depreciation -
real estate
owned 68,782 324,576 755,704 751,859
Depreciation -
investment in
equity affiliates - 225,154 419,923 1,193,507
- ------- ------- ---------
Funds from
operations
("FFO") $(133,616,679) $(107,688,797) $(229,455,529) $(79,284,478)
============= ============= ============= ============
Diluted FFO per
common share $(5.26) $(4.28) $(9.06) $(3.46)
====== ====== ====== ======
Diluted weighted
average shares
outstanding 25,387,410 25,148,224 25,313,574 22,916,648
========== ========== ========== ==========
Arbor is presenting funds from operations, or FFO, because management
believes it to be an important supplemental measure of the Company’s
operating performance in that it is frequently used by analysts, investors
and other parties in the evaluation of real estate investment trusts
(REITs). The revised White Paper on FFO approved by the Board of
Governors of the National Association of Real Estate Investment Trusts, or
NAREIT, in April 2002 defines FFO as net income (loss) attributable to
Arbor Realty Trust, Inc. (computed in accordance with generally accepted
accounting principles (GAAP)), excluding gains (losses) from sales of
depreciated real properties, plus real estate related depreciation and
amortization and after adjustments for unconsolidated partnerships and
joint ventures. The Company considers gains and losses on the sales of
undepreciated real estate investments to be a normal part of its recurring
operating activities in accordance with GAAP and should not be excluded
when calculating FFO. To date, the Company has not sold any previously
depreciated operating properties, which would be excluded from the FFO
calculation. Losses from discontinued operations are not excluded when
calculating FFO.
FFO is not intended to be an indication of our cash flow from operating
activities (determined in accordance with GAAP) or a measure of our
liquidity, nor is it entirely indicative of funding our cash needs,
including our ability to make cash distributions. Arbor’s calculation of
FFO may be different from the calculation used by other companies and,
therefore, comparability may be limited.
Arbor Realty Trust, Inc.
Summary of Equity and Profit Interests
(all dollar amounts in thousands)
Unaudited
Initial ART Current Approximate
Investment Investment Cash Equity Square
Name Amount Date Investment Profit % Footage
---- ------ ---- ---------- -------- -------
80 Evergreen $384 3Q03 $201 12.50% 77,680
930 Flushing 1,126 3Q03 291 12.50% 304,080
450 W. 33rd St 1,500 4Q03 1,137 0.58%(1) 1,746,734
Toy Building 10,000 2Q05 5,720 10.00% 320,000
Homewood Mtn
Resort - 2Q06 - 25.60% 1,224 (3)
Richland Terrace
Apartments - 3Q06 - 25.00% 342,152
Ashley Court
Apartments - 3Q06 - 25.00% 177,892
Nottingham
Village - 1Q07 - 25.00% 285,900
Extended
Stay Hotel
Portfolio 115,000 (5) 2Q07 115,000 16.17% 684 (4)
Alpine Meadows 13,220 3Q07 10,220 35.40% 2,163 (3)
St. John's
Development 500 4Q07 2,028 50.00% 23 (3)
Windrush Village
Apartments - 2Q08 445 25.00% 221,726
Current
Property Debt Balance
Name Type Location on Property Comments
---- ---- -------- ----------- --------
80 Evergreen Warehouse Brooklyn, NY $5,000 Property
refinanced
June 2008
930 Flushing Warehouse Brooklyn, NY 24,375 Property
refinanced
July 2005
450 W. 33rd St Office New York City 517,000
Toy Building Conversion New York City 343,400 (2) Condo conversion
- investment
held in Taxable
REIT Subsidiary
("TRS")
Homewood
Mtn Resort Land Homewood, CA 107,166 Profits interest
held in TRS
Richland Terrace Multi
Apartments Family Columbia, SC 8,934
Ashley Court Multi
Apartments Family Fort Wayne, IN 5,452
Nottingham Multi
Village Family Indianapolis, IN 6,626
Extended Stay
Hotel Portfolio Hotel Multistate 7,400,000 Preferred return
of 12% on equity
Alpine
Meadows Land Alpine Meadows, CA 34,000 Preferred return
of 18% on equity
St. John's
Development Land Jacksonville, FL 25,000
Windrush Village Multi
Apartments Family Tallahassee, FL 12,800
(1) Represents approximately 29% of the 2% retained interest in the
property. In addition, Arbor has approximately 29% of a 50% interest
in the property's air rights.
(2) Debt balance represents anticipated debt financing required to
complete condominium conversion project.
(3) Amount represents approximate acreage of property.
(4) Amount represents approximately 684 properties in 44 states and Canada
with approximately 76,000 rooms.
(5) As of December 31, 2009, the outstanding balance of this investment
was $2.4 million.
SOURCE Arbor Realty Trust, Inc.
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